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City of Mitchell’s sales tax intake slows

Sales tax collections this year in the city of Mitchell have so far failed to keep up with last year’s record-setting pace.

The city’s 2 percent sales tax brought in about $2.79 million from July to September, according to a report presented by Mitchell Finance Officer Marilyn Wilson at a City Council meeting earlier this month. That brings total collections for the year to about $7.45 million, down about 1.4 percent from the same period last year.

Mitchell City Council President Jeff Smith said in an interview Thursday that he is not alarmed by the slight decrease in the city’s sales tax collections.

“We’ll have to keep our eye on it and just monitor it,” Smith said.

The city’s sales tax generated nearly $10.74 million for all of 2012, an all-time record for the city and a 9.2 percent increase from the year before. Smith and other city officials have attributed last year’s increase in part to a hailstorm that pummeled houses in Mitchell on May 5, 2012, and had roofing companies spending months repairing houses throughout the city.

“We know that jumped the numbers,” Smith said. “Nobody could have planned for that.”

In 2011, sales tax collections totaled about $6.96 million through September, which is about 6.5 percent less than this year’s total in the same period. That’s worth noting, Smith said, considering last year’s record-high amount of collections.

“In reality, I’m pleased it’s only down about 1 percent,” Smith said.

In July, the city’s sales tax generated slightly less than $706,000. That’s the lowest amount for that month since 2007.

In August, collections totaled about $1.7 million, which is a comparable total for that month in past years.

In September, the tax brought in $1.02 million, smashing the record for the month, which was set last year when slightly less than $884,000 was collected during the month.

The city’s entertainment tax — an extra 1 percent tax on lodging, alcoholic beverages and prepared food — brought in $221,211.54 from July to September. That’s the most collected from the tax in a three-month span since the final quarter of 2010.

In total, $498,144.60 has been collected via the city’s entertainment tax so far this year, up 4.37 percent from the same time last year.